Mobile operators’ costs for LTE frequencies may increase tenfold – Kommersant

Mobile operators' costs for LTE frequencies may increase tenfold - Kommersant

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The payment of mobile operators for the use of the entire radio frequency spectrum in 2024 could double if the Ministry of Digital Development agrees on a new methodology for calculating this payment and eliminates the discount to companies for using the 4G spectrum. Izvestia reported this with reference to a source in the communications market.

Currently, operators pay for the use of frequencies for 4G (LTE) at a significant discount as a promising technology. However, the updated calculation methodology does not classify LTE as such a technology, so fees for using frequencies could increase tenfold, the publication’s interlocutor said.

The discussion of adjusting the methodology for determining fees for the radio frequency spectrum was also confirmed to Izvestia by another source in the communications market. At the same time, the publication’s interlocutor in government agencies considers the issue of increasing fees to have already been resolved. According to him, due to changes to the budget, it will be possible to attract an additional 20 billion rubles necessary for the implementation of social projects in the field of communications, in particular connecting small settlements to the Internet.

Currently, the four largest mobile operators in Russia (MTS, Beeline, MegaFon and Tele2) pay 15–17 billion rubles for the use of frequencies, an Izvestia source close to one of the companies clarified. According to his estimates, changes in the calculation methodology will lead to an increase in such expenses to 30 billion rubles.

October 24 Ministry of Digital Development announced about plans to completely disable 3G mobile communication networks in Russia in 2027-2030. Fixed wireless Internet access may be turned off even earlier – in 2025.

MegaFon and VimpelCom announced an increase in mobile Internet speed by 10–12% due to the transfer of frequencies for 3G to the 4G standard back in July. Representatives of telecom operators interviewed by Kommersant believe that Internet speeds may begin to decline in 2024.

More details in the text “Kommersant” “Mobile Internet has become faster”.

Milena Kostereva

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